\nManitex International, Inc. (Nasdaq: MNTX) (“Manitex” or the “Company”),<\/strong>a leading international provider of truck cranes, specialized industrial equipment, and construction equipment rental solutions to infrastructure and construction markets, today reported financial results for the three months ended March 31, 2023.<\/p>\n
FIRST QUARTER 2023 RESULTS<\/b><\/p>\n
(all comparisons versus the prior year period unless otherwise noted)<\/i><\/p>\n MANAGEMENT COMMENTARY<\/b><\/p>\n \n\u201cManitex delivered another consecutive quarter of profitable growth, a performance highlighted by continued strength in new orders and sustained margin expansion,\u201d stated Michael Coffey, CEO of Manitex. \u201cThe favorable demand conditions evidenced throughout last year have continued into the first quarter, particularly in North America, resulting in 16% year-over-year total backlog growth, the highest backlog level in more than five years. Recently announced product introductions are resonating with our customers, further contributing to sales growth in the period.\u201d<\/p>\n \n\u201cLast quarter we introduced Elevating Excellence<\/i>, our three-year strategic plan. Significant progress has been made since, as evidenced in our Q1 results,\u201d continued Coffey. \u201cOur Elevating Excellence<\/i> value creation framework continues to drive measurable commercial expansion and operational improvements across the organization. Evidence of our progress is reflected in our first quarter Adjusted EBITDA margin, which increased 475 basis points on a year-over-year basis to 9.3%, overcoming the seasonal softness expected this time of year.\u201d<\/p>\n \n\u201cProduct innovation remains a central pillar of our multi-year commercial growth strategy,\u201d continued Coffey. \u201cDuring the last twelve months, we\u2019ve introduced several next-generation crane technologies, including the recently launched ECSY-Electric Crane System and our 85-ton TC850 Series truck-mounted cranes, both of which were on display at CONEXPO 2023, the largest construction trade show in North America. At the tradeshow, Manitex received record new orders, much of which is not yet reflected in our strong first quarter backlog reported today. We are on track to introduce more innovative solutions in 2023, rapidly expanding and updating our offering. We anticipate this focus on new product development will further support our strategic focus on organic sales growth as we introduce category-leading technologies within underserved, high-growth market verticals. I look forward to sharing these details with you later in the year.\u201d<\/p>\n \n\u201cOur ratio of net debt to trailing twelve-month Adjusted EBITDA declined to 3.5x at the end of the first quarter, as improved operating results moved us closer toward achieving our long-term target of at-or-below 3.0x,\u201d stated Joseph Doolan, Chief Financial Officer of Manitex. We remain well-capitalized to support the growth of the business, with $36.6 million of total cash and availability under our credit facility.\u201d<\/p>\n \n\u201cWe are in the early phases of a multi-year business transformation that seeks to drive value creation through a combination of commercial expansion, operational improvements and a disciplined approach to capital allocation,\u201d continued Coffey. \u201cAt a commercial level, we will seek to increase our sales mix within higher-value product categories, with an emphasis on the North American market. Operationally, we are focused on driving economies of scale that lower our production costs and increase our production velocity. Finally, with respect to our capital allocation strategy, we will continue to prioritize debt reduction and select investments in high-return organic growth initiatives.\u201d<\/p>\n \n\u201cThis year, our team will be stay focused on enhancing the foundational systems and processes required to support efficient growth,\u201d continued Coffey. \u201cIn application, this means improving how we source, analyze and deploy data to drive informed business decisions. In April 2023, we successfully completed the final phase of an ERP upgrade that will support us as we enter our next phase of growth, following a similar upgrade that occurred at Rabern in December 2022. These changes are further positioning us to capitalize on strong demand within both new and existing markets, as evidenced by our strong first quarter results.\u201d<\/p>\n \n“Today, we are reiterating our full-year 2023 adjusted EBITDA growth guidance first introduced last quarter,\u201d continued Coffey. \u201cGiven our solid first quarter results, continued new order momentum, and sustained margin improvements, we remain on pace to deliver low double-digit adjusted EBITDA growth in 2023.\u201d<\/p>\n FIRST QUARTER 2023 PERFORMANCE<\/b><\/p>\n \nThe Company reported net revenue of $67.9 million in the first quarter 2023, an increase of 12.3% versus the prior-year period, driven mainly by contributions from the Rabern Rentals acquisition completed in April 2022. Revenue growth was negatively impacted by $1.2 million, or approximately 3.3%, due to lower truck chassis sales, which are largely pass-through revenue items. The Company expects lower chassis sales to be a headwind to reported sales growth and a benefit to reported gross margin in 2023.<\/p>\n \nLifting Equipment Segment revenue was $61.1 million in the first quarter 2023, an increase of 1.1%, versus the prior-year period. As detailed previously, lower truck chassis sales impacted first quarter revenue by $1.2 million. Lifting Equipment revenue growth was driven by improving demand trends in domestic and international markets, coupled with improved throughput in manufacturing facilities.<\/p>\n \nRental Equipment Segment revenue was $6.8 million in the first quarter 2023, supported by strong end-market demand in key North Texas markets, including the opening of the Company\u2019s Lubbock, Texas location in March 2023. The Rabern business benefitted from the deployment of new rental fleet acquired in 2022 and market share gains in its Texas market.<\/p>\n \nGross profit was $14.4 million in the first quarter, an increase from $10.1 million in the prior year period due to strong revenue growth, benefits from the Company\u2019s operational improvement initiatives, and improved mix. As a result of these factors, gross profit margin increased 440 basis points to 21.2% during the first quarter 2023.<\/p>\n \nSG&A expense was $11.0 million for the first quarter, compared to $8.8 million for the comparable period last year. The increase was primarily related to SG&A expense of $1.4 million related to the Rabern acquisition, costs related to attending the Con Expo trade show, and increased stock compensation expense, partially offset by the higher transaction costs which were incurred in the first quarter 2022.<\/p>\n \nOperating income was $2.6 million for the first quarter, compared to operating income of $0.7 million for the same period last year. First quarter operating margin was 3.8%, up from 1.1% in the prior year period. The year-over-year improvement in operating income was driven by the strong gross margin performance and disciplined cost control, offset by nearly $1.0 million of sales and marketing expenses related to the CONEXPO 2023 trade show.<\/p>\n \nThe Company delivered a GAAP Net Loss of $26,000 for the first quarter 2023, compared to net income of $0.2 million, or $0.01 per diluted share, for the same period last year. Adjusted net income was $1.4 million, or $0.07 per diluted share in the first quarter 2023, an increase compared to adjusted net income of $0.9 million, or $0.05 per diluted share, for the same period last year. Adjusted net income excludes $0.8 million of stock compensation expense and approximately $0.7 million of other non-recurring expenses in the first quarter of 2023.<\/p>\n \nAdjusted EBITDA was $6.3 million for the first quarter 2023, or 9.3% of sales, compared to $2.7 million, or 4.5% of sales, for the same period last year. See Non-GAAP reconciliations in the appendix of this release.<\/p>\n \nAs of March 31, 2023, total backlog was $238.1 million, up 3.4% from the end of 2022 and up 15.8% from the end of the first quarter 2022, driven by continued favorable trends in key end markets and the contribution from new product introductions in North America.<\/p>\n BALANCE SHEET AND LIQUIDITY<\/b><\/p>\n \nAs of March 31, 2023, total debt was $96.2 million, compared to $90.3 million at the end of fourth quarter 2022. Cash and cash equivalents as of March 31, 2023 were $10.1 million, resulting in net debt of $86.0 million, compared to $82.1 million at the end of fourth quarter 2022. Net debt at the end of the first quarter 2023 was up modestly from year-end due to rental equipment purchases to support growth for the Rabern business and seasonal working capital needs. Net leverage was 3.5x at the end of first quarter 2023, down from 3.9x at the end of fourth quarter 2022. As of March 31, 2023, Manitex had total cash and availability of $36.6 million.<\/p>\n STRATEGIC UPDATE – ELEVATING EXCELLENCE INITIATIVE<\/b><\/p>\n \nIn early 2023, Manitex formally launched its multi-year business transformation strategy, Elevating Excellence<\/i>, which aims to drive sustained commercial growth and improved operating performance, ultimately resulting in long-term value creation for shareholders. The three main tenets of the business strategy include generating commercial growth (organic market share expansion, product innovation, expanded aftermarket focus), enhancing operating performance (optimized manufacturing resources, enhanced sourcing and procurement, product mix optimization), and disciplined capital allocation.<\/p>\n \nKey progress achieved during the first quarter against the strategy are as follows:<\/p>\n LONG-TERM FINANCIAL TARGETS<\/b><\/p>\n \nManitex introduced long-term financial targets as part of its Elevating Excellence<\/i> initiative. The full-year 2025 financial targets reflect the underlying strength of Company\u2019s end markets and expected commercial and operational benefits from the Elevating Excellence initiatives. The Company\u2019s financial targets are unchanged, as detailed in the following table.<\/p>\n\n
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